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PRIVATE LIMITED COMPANY (Minimum no. of Members -2, Maximum – 200):- Introduction: The private limited company is a proven and successful business model. Forming a private limited company results in protection of personal assets, access to more resources, financial assistance and greater tax cuts. A Private Limited Company is easy to form, has continuity, limited liability, easy access to capital and much more. Private limited companies allow for Foreign Direct Investment of upto 100% through the automatic route, therefore, your business to go international, it is best to start a private limitedcompany. Advantages of Private Limited Company Separate Legal Entity: - A Private Ltd. Co. is a legal entity and a juristic person established under the Act. Limited Liability: - Member’s personal assets are safe and liability of members is limited to the assets of a company. Uninterrupted Existence: - A company has perpetual existence i.e. it won’t be affected by the change, exit or entry of member Borrowing Capacity: - Banks prefer Private Limited Companies to render loans over partnership firms and proprietary concerns. Investment Ready: - Generally, when any business idea clicks, fund is a pre-requisite to growth. A private company is the best option for this as it is easier to raise funds from VCs etc. Automatic 100% foreign direct investment is allowed in many sector Tax Deduction: - Sole traders and partnerships pay income tax. Companies are required to pay Corporation tax on their profits. There is a wider range of allowances and tax-deductible costs that can be offset against a company’s profits. Legal Requirements:  Minimum 2 Shareholders for Private Limited Company Registration  Minimum 2 Directors  At least one Indian Resident  Share Capital as per client’s choice  DIN for all Directors Documents Required: Scanned Copy of the Following Documents has to be Provide by the Promoters of the Company:  PAN card copy with Self attestation.  Voter Id copy or Passport copy or Aadhar card copy or Driving license copy with self-attestation.  Latest Bank account statement or Mobile /Telephone bill or Electricity Bill (not older than two months)- no need for self-attestation.  Latest passport size photo in jpg.  For the registered office proof of the company, if the property is rented/ leased, then copy or rental agreement or lease agreement.  Copy of Electricity bill or Property Tax receipt or Water Tax receipt not older than two months.  Copy of No objection certificate from the owner of the property.  If owned property, copy of conveyance deed and electricity bill is sufficient. .  In case of NRI or Foreign national, Passport copy has to be notarized at the Indian Embassy of the particular country.  Utility bill has to be provided of the particular country where the NRI or Foreign national resides and it should be notarized.
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